Miners look set for another tough day today after data from China compounds the current softness in prices. A miss on trade and inflation data from the world’s second largest economy will put pressure on the mining sector this morning, many of which are significant components of the FTSE 100. The index is set to open some 30 points lower.
And if that wasn’t enough to get the pulse racing on a Monday morning, fears over the ongoing unrest in the Ukraine continue to have participants tethered to safe havens more so than usual. Indeed, the market is notoriously bad at pricing in geopolitical risk and has a tendency to overcharge for volatility, presenting binary outcomes through sometimes chaotic price shocks. Those with a strong appetite for risk, and perhaps those a little reckless, will look to use event risk to pick up quality and position for relief.